Question :
Incomes/expenses that arise from transactions that are clearly different from the ordinary business activities and therefore are not expected to incur frequently are called:-
Option 1:
Prior period items
Option 2:
Extraordinary items
Option 3:
Abnormal items
Option 4:
Non-ordinary items
Correct Answer:
Solution : The income statement events that are both unique and infrequent are known as extraordinary items in accounting. They are erratic and unrelated to the core business operations.
Hence the Correct answer is option 2.
Question : ________________are incomes and expenses that arise from events or transactions that are clearly distinct from the ordinary business activities of the enterprise and, therefore, are not expected to recur frequently or regularly.
Option 1: Non-operating income
Option 2: Operating income
Option 3: Extraordinary items
Option 4: Operating expenses
Question : Payment for buy-back of Shares is an example of
Option 1: Extraordinary items of Operating activities
Option 2: Extraordinary items of Investing Activities
Option 3: Extraordinary items of financing Activities
Option 4: None of the above
Question : Compensation paid to employees under Voluntary Retirement Scheme is a example of ____________.
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